Update on Bill to Remove Cap on County TAT Revenues

3 02 2014

HB1671Today the House Committee on Tourism passed with amendments, HB1671, which would remove the current cap on transient accommodations tax (TAT) revenues that are distributed to the counties and would establish the distribution of these revenues as a percentage of TAT collected. The amendment defected the date in the bill to July 1, 2050 and the bill will now move on to the House Committee on Finance.

The TAT is collected on lodgings occupied by a transient for less than 180 consecutive days.  The TAT funds for the counties help offset the cost the visitor industry has on county services such as lifeguards, police and fire personnel to infrastructure like sewers, parks, and roads. In 2013, the Hawaii State Legislature made the cap of $93 million of TAT revenues to the counties permanent.



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